Vietnam remains the favorite place for international investment in Southeast Asia. As the nation grows more appealing to international firms and investors, we expect sustained demand for industrial real estate in the future. Finding good industrial property agents is a critical part of the process. Hiring qualified industrial property agents is the best way to avoid losing money through industrial real estate investing mistakes or missed opportunities.
Industrial real estate is one of Vietnam’s real estate market’s bright spots in 2021. The efficient containment of the recent economic depression, as well as the ratification of Free Trade Agreements (FTA), has increased global manufacturing and logistics investors’ trust in Vietnam, which will continue to have high development potential throughout 2021.
There are five key reasons for Vietnam’s quick recovery in the industrial real estate industry, which are as follows:
- The middle class and the vibrant private sector are expanding rapidly;
- Political stability, as well as government incentives to increase industrial land supply
- Increase the cost of infrastructure building to avoid a real estate market freeze;
- Trade treaties, both bilateral and multinational;
- Vietnam is well-positioned to recover and thrive after the worldwide economic depression.
Prospects for the Development of Vietnam’s Industrial Real Estate Market
Vietnamese industrial real estate in 2021 has stressed the element of significant technology and manufacturing businesses relocating their investments from China to Vietnam.
The prolonged epidemic is also likely to hasten the departure of multinational corporations’ manufacturing facilities from China. In China, manufacturing businesses with thin margins will soon face challenges from growing lease rates, labor costs, and supply. Apple’s component and assembly suppliers, most notably Pegatron and Foxconn from Taiwan; Sharp, Nintendo, and Komatsu from Japan; and Lenovo from Hong Kong, have all declared plans to relocate or expand operations to Vietnam.
As Vietnam focuses on high-value-added businesses like high-tech or supporting high-tech manufacturing, these enterprises have been compelled to transfer to Southeast Asia, in particular, Vietnam.
ESR Cayman Limited, Asia Pacific’s largest logistics real estate platform, and BW Industrial Development Corporation (BW), Vietnam’s leading logistics and industrial real estate developer, announced a new joint venture with the goal of owning and jointly developing 240,000 m2 in My Phuoc 4 industrial park near Ho Chi Minh City. This collaboration represents ESR Cayman Limited’s introduction into the Vietnamese market, broadening the breadth of this company’s operations in Southeast Asia.
Furthermore, industrial real estate in Vietnam is still in its early phases in terms of connecting with supply chains, storage, and transportation challenges. Therefore, new solutions from credible industrial property agents are needed. A more tailored strategy to help investors in engaging in the industrial real estate industry is required.
How to Find Good Industrial Property Agents
Working with a good industrial real estate agency provides several advantages: help with pricing, regulations, networks of professionals, support and financing, experienced negotiation, identifying possible problems, etc.
It is no longer difficult to locate the best alternatives for companies looking to grow or invest in Vietnam with the assistance of a trustworthy team of industrial property agents.
There are a plethora of real estate brokers fighting for the job through internet advertisements, postcards, and yard signs, but with so many to choose from, it may be difficult to select the ideal one.
Before you start looking for an industrial location or manufacturer, it’s crucial to establish what your goals are and what qualities you need in one of these agents. These actions will assist you in making the best selection for your company or portfolio and make the whole process easier.
- They are well-versed in the field of industrial real estate.
Make sure that the industrial property agents you choose has past experience of aiding tenants in locating production, manufacturing, assembly, warehousing, research, distribution, and some associated office space for physical commodities rather than service-related customers.
Savills Industrial is Vietnam’s leading Industrial Real Estate Service, assisting industrial investors looking to diversify their regional portfolio, expand current operations, dispose of or acquire facilities, strategically lease an industrial asset, or enter the market for the first time.
- They have past experience of representing tenants
In an ideal world, you’d like to work with an agent who has a good record. Determine the number of comparable firms with which they collaborate and listen to their success stories. This is an ideal opportunity to get referrals from existing clients.
Finding the right Industrial Real Estate Services can be challenging. Savills Industrial property agents will develop transaction procedures that are systematic, avoiding costly risks while offering substantial advantages. By advising tenants in manufacturing, logistics, and e-commerce on site searches and evaluations of Vietnam’s industrial parks.
- Their success in the field of the location and search
An industrial real estate agent, industrial property management companies can assist in determining whether the asking price is appropriate in the current market environment.
Additionally, the industrial and logistics real estate agent, industrial property agents will play a vital role in the development of the lease contract, ensuring that all terms and yearly rate increases are appropriate and compatible with market conditions. Experienced agents should have a lot of knowledge and connections in the area you’re looking for, which may help ensure you get the best deal on the space you’re looking for.
If you’re thinking of entering the industrial market, or diversifying or extending your operations in Vietnam; Savills Industrial property agents can help you with all of your requirements.